MUMBAI: The Reserve Bank of India (RBI) will conduct fine-tuning operations to manage unanticipated and one-off liquidity flows, Governor Shaktikanta Das said on Tuesday.
As the market settles down to regular operations, the RBI will conduct fine-tuning operations from time to time, as needed, to manage unanticipated and one-off liquidity flows so that liquid conditions in the system evolves in a balanced and evenly distributed manner, Das said.
He was speaking at a conference organised by Fixed Income Money Market and Derivatives Association of India (FIMMDA) and Primary Dealers' Association of India (PDAI). The governor said that government securities are distinct asset class, and it is important to appreciate the role of the g-sec market in the overall macro interest rate environment of the economy.